"Cautionary tale": People react as WeWork files for bankruptcy
The recent WeWork bankruptcy announcement is big news in the business world, and people certainly have much to say about it.
There was already speculation that the beleaguered company was going to file for bankruptcy protection, and on Monday, November 6, the New York-based coworking company confirmed the rumours — filing in the US, with similar plans intended for its Canadian operations.
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“We defined a new category of working, and these steps will enable us to remain the global leader in flexible work,” said WeWork CEO David Tolley.
Tolley may be optimistic about the company’s future, but online, people are rather dubious about WeWork’s business model.
The fact that Wall Street decided WeWork was “worth” $47B even though it’s business model was CLEARLY less efficient/profitable than the traditional commercial real estate model of renting offices to whole companies instead of individual ppl… it had to be an intentional bubble.
— Strike Lee (@BostonJerry) November 7, 2023
Cautionary tale….
— Glenn Allen 🍊🚲🏐⌨️ (@glenn_a_allen) November 7, 2023
High-interest rates, post-pandemic hybrid working and long leases might have turned this startup culture enabling work spaces difficult to sustain.
— George Abraham (@GeorgeAbrahamv) November 7, 2023
This is a bummer, I believe the problem with We Work is that they did not count that most of the owners who needed these kinds of spaces really needed the space, not the hip-hop beer bars, and expensive machines. They only needed spaces with internet, phones, fax, and privacy.
— AliPlum623 (@APlum623) November 7, 2023
One Twitter user even compared it to Entertainment 720, the fictional media-entertainment conglomerate in the popular sitcom Parks and Recreation.
WeWork was just another Entertainment 720. A business with no actual business https://t.co/dPQNgi6wje pic.twitter.com/d7CfJMNH9T
— Shayna (@MsShaynaT) November 7, 2023
Another questioned people’s investment decisions.
Who bought that Wework IPO, man?
And what were you thinking??$we
— Eyebrow Raisers (@EyebrowRaisers) November 7, 2023
One Twitter user from the UK shared a video of a near-empty WeWork location, indicating that the signs were already there.
9am on a Wednesday, covent garden
Can’t think why WeWork might be in trouble…
Or the UK economy for that matter 😅 pic.twitter.com/SXqX6cMI6W
— Matt Bradburn (@Brdbrnm) November 1, 2023
But for one X user, one company’s loss is another man’s gain.
When #WeWork files for bankruptcy and you come through looking for their Herman Miller office chairs at the liquidation sale pic.twitter.com/2nvOD7MBfE
— Monty | CSS Wizard, Creative Programmer (@NYCBEARDO) November 7, 2023
It’s all about those Herman Miller chairs.
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